20 property agents disciplined for marketing vacant HDB flats that had not been lived in: CEA

SINGAPORE: Since January 2022, 20 property agents have been found to be involved in marketing vacant HDB flats that had not been lived in, the Council of Estate Agencies (CEA) said on Thursday (Oct 12).

Action was taken against the errant agents, including fines and letters of censure, CEA said.

Flat owners are required by HDB to fulfil a minimum occupation period before selling their home, and the owners have to physically occupy the flat.

A number of these cases were reported in the media last year, when news reports highlighted that there were Housing Board flats marketed on property portals as “never stayed in before, brand new”, with photos of the units that showed no signs of having been lived in.

CEA said this week that it had concluded investigations on four cases reported in the media in December 2022.

Two property agents were found to have breached the Code of Ethics and Professional Client Care (CEPCC) for not complying with laws and regulations that apply to HDB flats in the conduct of estate agency work, said CEA.

The agent involved in the marketing of a vacant HDB flat at Yishun Street 51 was fined S$1,000 (US$730) and censured. The agent who marketed an HDB flat at Depot Road was fined S$500 and has also been censured.

CEA did not name the agents, but a public register of property agents said that ERA Realty Network agent Christina Au had been fined S$1,000 for attempting to facilitate the resale of an HDB flat "despite knowing that the sellers had not physically occupied the flat and/or fulfilled the requisite minimum occupation period".

Ms Isabelle Loo, also from ERA, was listed as having been fined S$500 for "marketing an HDB flat for sale and conducting viewings of the flat for prospective buyers, even though the owners of the flat were not eligible to sell the flat in the open market at the material time because they had not physically occupied the flat for the duration of the minimum occupation period".

Responding to CNA queries, ERA key executive officer Eugene Lim said that ERA has always "fully supported" HDB's minimum occupation period (MOP) rules.

"Both agents are sincerely remorseful and we've taken this opportunity to reinforce their understanding of HDB's rules on MOP," he said.

HDB said that it will repossess the two HDB flats located at Yishun Street 51 and Depot Road, and one of the flats has already been taken over by HDB. Flats that are compulsorily acquired by HDB will be put up for sale via the Sale of Balance Flats exercises. 

It added that HDB flats are primarily intended for owner-occupation, which is reinforced by housing policies such as the MOP. This applies to both HDB flats bought directly from HDB or from the resale market.

"HDB takes the violation of MOP rules seriously and will not hesitate to carry out enforcement actions. Should investigations conclude that a flat was not owner-occupied during the MOP, HDB may compulsorily acquire the flat, impose a financial penalty of up to S$50,000, or issue written warnings," said the public housing agency.

In addition, owners whose flats are compulsorily acquired by HDB will be debarred from buying a subsidised flat, taking over such flat by way of change in flat ownership, or renting a public rental flat from HDB along with other restrictions.

Agents for another two flats at Bukit Batok East Ave 6 and Henderson Road were not found to be in breach of the CEPCC, said CEA. 

Editor's note: This article has been amended to reflect a clarification from CEA that not all 20 agents were fined after they were found to be involved in marketing vacant HDB flats.